Comments on: Tax Considerations For Ministers

By: Should You Hire an Accountant or CPA?

Should You Hire an Accountant or CPA? — Mon, 11 Jan 2010 11:07:59 +0000

[...] specific tax situation (such as owning real estate, a small business, if you are in the military, a pastor/minister, day trader, or someone with any other complicated situation). Read about another blogger and small [...]

By: Flip Video Camera Giveaway Winners

Flip Video Camera Giveaway Winners — Mon, 21 Dec 2009 01:50:19 +0000

[...] Tax Considerations For Ministers. Interesting reading for those of you who are in the ministry, or are just curious about taxes. [...]

By: Shawn G

Shawn G — Tue, 15 Dec 2009 03:06:49 +0000

As a minister I can say that there are certain benefits that we have come tax time, but there are also some headaches that come with it. For example, if you are given a parsonage to live in, while you do not have to pay income tax on that housing, you do have to pay social security and medicare on the fair rental value of the property. Another headache is trying to figure out exactly how much federal income tax you have to pay the first year of ministry. The IRS website does not give a clear formula, only vague forms that might lead you to a different amount each time.

For those who suggest going to an accountant, unfortunately many accountants do not know how to properly figure clergy taxes because they do not do it that often. In the end, you have to explain how to do it and therefore did not really need the accountant.

Also, when it comes to ministers opting out of social security it has to happen in the first two years of their ministry otherwise they are stuck like everyone else. They can opt out under this stipulation:

“I certify that I am conscientiously opposed to, or because of my religious principles I am opposed to, the acceptance (for services I perform as a minister, member of religious order not under a vow of poverty, or a Christian Science practitioner) of any public insurance that makes payments in the event of death, disability, old age, or retirement; or that, makes payments toward the cost of, or provides services for, medical care. (Public insurance includes insurance systems established by the Social Security Act.)…Under penalties of perjury, I declare that I have examined this application and to the best of my knowledge and belief it is true and correct.”

By: Joe Plemon

Joe Plemon — Tue, 15 Dec 2009 01:58:10 +0000

Craig, I am not a minister, but this helps me better understand the tax issues my minister deals with. I would like to see a follow up on how some pastors can opt out of Social Security. Who can opt out, what are implications, and when is it advisable? Joe Plemon´s last post ..How to Avoid the Negative Influences of the Wealth Effect

By: Patrick

Patrick — Mon, 14 Dec 2009 15:54:42 +0000

Very interesting article. I didn’t know about many of these until recently when I was talking about taxes with the pastor at our church. He sends his taxes to a tax firm that specializes in taxes for church members. Not a bad idea if you don’t want to do them yourself, and prefer to use a professional who is familiar wit the ins and outs of your situation.
Patrick´s last post ..Best Credit Cards: Cash Back and Rewards Points

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uberVU - social comments — Mon, 14 Dec 2009 13:35:21 +0000

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